Financial crash warning: Spain’s national bank says country faces horrific losses

“In particular, these bottlenecks have affected various sectors of activity very unevenly and have had a particularly severe impact in those industries located in the upstream stages of the value chain, i.e. in those sectors supplying goods for use in other industries.”

It added that “major imbalances between supply and demand recorded recently in the semiconductor and integrated circuit industry have had a very significant adverse impact on the motor vehicle industry, where many manufacturers have been forced to halt or cut their production plans.”

With regards to the Spanish automobile industry in particular, the “scale of the shock” is expected to see a 9 percent contraction in production for the second half of 2021.

In 2022, the industry will experience a 7 percent contraction in production, the bank said.